Simple Interest Calculator
Calculate simple interest on a loan or investment. Unlike compound interest, simple interest is calculated only on the original principal, making it straightforward to compute.
Simple Interest Calculator
finance calculator
How It Works
Formula
Simple Interest = Principal × Rate × Time I = P × r × t
Examples
$10,000 at 5% for 3 years
$1,500 interest, $11,500 total.
Frequently Asked Questions
What is simple interest?
Simple interest is calculated only on the original principal, not on accumulated interest. It is common for short-term loans, car loans, and some bonds.
How is simple interest different from compound interest?
Simple interest is calculated only on the principal. Compound interest is calculated on the principal plus accumulated interest, so it grows faster over time.
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